gfp, I have no hard and fast rules for investing in biotech stocks. I recommend that before you invest in a any biotech that you consult with "Dew Diligence,' the most knowledgeable person in all of biotech and pharmaceuticals. He is brilliant at sniffing out scams in biotech, and he is especially adept at deciphering PR's and CC's for their "hidden" meanings. He can help keep you out of trouble in biotech and that should be your first requirement. (I'm not saying that you can't make money on scam biotechs, but, at least, you ought to know what you're getting into.)
I don't invest in medical device companies. I'm not interested in companies with drugs that are "enhanced" versions of chemotherapeutics. I don't invest in cancer vaccine companies. I'm extremely skeptical of small-cap biotechs that are tackling AD and Parkinson's, but I readily admit that those stocks can take off on the slightest good news.
Biotech is out of favor now, so I think there are some real bargains out there.
Bladerunner
